ctb, thanks for that listing of 23 BDC stocks which are among the 5,000 or so companies traded on the OTCBB and Pinks. Even as a “partial list” you support my contention that the BDC structure typically is not common among start-up companies. And since none of the 23 are involved in E&P you support my main point that the BDC election is a particularly uncommon route for a public O&G to take. I’m not saying that it is a bad idea, just that AMEP isn’t entirely what it initially appears to be and the confusion may be hurting the SP.
Historically, operating as a BDC has been difficult, which is why there were so few of them around and why the rare successes have gained such publicity. Also, a BDC literally is a closed-end, publicly-traded, investment fund. They are supposed to make sound but helpful investments and to earn profits, which are distributed to shareholders in the form of quarterly dividends or returns of capital. I believe that most people would consider the highly speculative funding of wildcatting activities to be an improper application of the BDC intention, which is why I say you will find that an E&P structured as a BDC is by far the exception rather than the rule. So those looking at AMEP as a BDC may decide to buy stock in a more traditional investment vehicle.
However, as an E&P the BDC structure has given AMEP an additional layer of overhead in a business where overhead generally doesn’t exist. “Many's the slip ‘twixt the cup and the lip;” in other words, because AMEP’s revenue flow isn’t as straightforward as usual there are more opportunities for earnings to disappear before they become booked profits. Most E&Ps consist of an oil guy and a money guy, both working out of their trucks until recurring revenue from those first few strikes begins to come in. With all the additional complications of meeting BDC requirements on top of meeting public stock company requirements, there’s plenty of room for unnecessary waste, inefficiency and fraud. Add in a few business transactions and ongoing financial relationships with family and friends -- not to mention the necessary self-dealing arrangements which any “sole-proprietor” must make in order to cover compensation and expenses -- and you’ve got yourself a suspicious looking package of sweetheart dealings that is offered for sale to the public. For me this is preferable to a pinksheet or other issue which doesn’t report anything to anyone at all, but others who are looking at AMEP as a E&P may decide to gamble on a more traditional O&G company where they can be more certain that revenues earned at the wellhead will translate into profits on the bottom line.
I still like AMEP but I also still want to know why the company is structured as it is and what PROFITS shareholders have earned from all those revenues you keep talking about.
News 
Market Data 
Discover 
